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BNY Mellon US Equity Income Class U - Income (GBP)

Sell:133.41p Buy:133.41p Change: 0.91p (0.69%)
Prices as at 21 November 2024
Sell:133.41p
Buy:133.41p
Change: 0.91p (0.69%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
Prices as at 21 November 2024
Sell:133.41p
Buy:133.41p
Change: 0.91p (0.69%)
Prices as at 21 November 2024
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

This fund is on the Wealth Shortlist of funds chosen by our analysts for its long term performance potential. However, this is not a recommendation to buy.

The fund aims to maximise total returns by growing both the income it pays to investors and the capital value. We think this is a good way of investing in larger companies based in the US that the manager believes are trading below their true value. That makes it different from many other US funds that focus on companies with high-growth expectations, and we think the two styles could work well together in a portfolio.

Our view on the sector

UK investors need little introduction to America. It's the world's biggest stock market and is home to world-leading companies in almost every industry there is, from media and film, through to manufacturing and transportation. We think most diversified portfolios should have some exposure to the US market. But it's one of the most heavily researched in the world so share prices of well-known companies can react quickly to new information. We think this can make it more difficult for fund managers to find opportunities missed by others and to consistently perform better than the broader market over the long term. Many funds investing in the US aim to grow the value of your original investment, rather than pay a high level of income. Some focus on the largest companies in the market. Others look for opportunities amongst small and medium-sized companies, which may offer greater growth potential, but are higher risk.

Performance Analysis

Over Bailer's career managing US equity funds stretching back to 2005, he's delivered good returns to patient investors. Our analysis suggests that Bailer has consistently demonstrated an ability to add value through stock selection. Our analysis also suggests that during periods where value has been in favour with investors, the fund has typically performed well. As always, past performance is not a guide to future returns.

We think Bailer has built a strong track record in US income investing and the fund offers something quite different to some of its peers in the IA North America sector. Bailer is well supported and resourced for the task at hand, and this gives us confidence in the fund's long-term prospects.

Investment Philosophy

Manager John Bailer can invest across the US market but tends to be invest in large companies that trade at attractive valuations. These companies should also provide a balance of income today and dividend growth potential in the future.

Process and Portfolio Construction

Bailer aims to invest in companies that he believes can deliver a balance of a good income today, and dividend growth in the future. Bailer spends a lot of his time working with the wider analyst team at BNY Mellon as part of the idea generation process. This includes detailed analysis of companies to determine how much he believes the company's shares are actually worth, and spotting those that he thinks are undervalued. Bailer wants to invest in companies that are trading at share prices lower than he feels they are worth in the long term, possibly reflecting some short-term headwinds. The manager works with analysts to consider what the upside and downside potential from here is.

Bailer will also look at the whether the company pays a dividend to its investors and whether he believes the dividend will grow over time. Every company the fund invests in must pay a dividend at the point of buying. Bailer believes if a company is paying a dividend, then this is a good indication of that management are allocating capital appropriately.

This process leads to a portfolio of 30-60 companies. The fund can be quite concentrated, so each investment can have a big impact on performance, increasing risk. There is also the flexibility to use derivatives which increases risk.

question mark Manager Track Record Based on HL Quantitative Research

This information is currently unavailable.

Fund Track Record

21/11/19 to 21/11/20 21/11/20 to 21/11/21 21/11/21 to 21/11/22 21/11/22 to 21/11/23 21/11/23 to 21/11/24
Annual return n/a n/a n/a -2.23% 24.95%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Information about the fund

Fund manager biography

manager photo
Manager Name: Brian Ferguson
Manager start date: 17 January 2017
Manager located in: TBC

Brian is a member of Newton's equity income team. In his current role, Brian is the senior portfolio manager on the Dynamic Large Cap Value Equity strategy, a position he has held since 2003. Brian joined Newton in September 2021, following the integration of Mellon Investments Corporation's equity and multi-asset capabilities into the Newton Investment Management Group. Before joining Newton, Brian was a senior portfolio manager and research analyst at Mellon Investments Corporation and The Boston Company Asset Management (both BNY Mellon group companies). Before joining BNY Mellon, Brian was a research analyst at Wellington Management. Prior to that, he was an assistant director of General Electric Capital Corporation's corporate treasury group and graduated from GE's Financial Management Program. Brian has a BA in Economics and International Relations from Bucknell University and an MBA with a concentration in Finance from Columbia Business School.

manager photo
Manager Name: John Bailer
Manager start date: 17 January 2017
Manager located in: TBC

John is a member of Newton's equity income team and is the lead portfolio manager for dividend-focused Large Cap Value strategies. John is responsible for creating the Income Stock strategy to meet demand from clients seeking attractively valued higher dividend income while not sacrificing dividend growth. He is also the lead portfolio manager for the Equity Income strategy, which emphasizes dividend growth stocks, and a senior research analyst on the Dynamic Large Cap Value strategy. John joined Newton in September 2021, following the integration of Mellon Investments Corporation's equity and multi-asset capabilities into the Newton Investment Management Group. Before joining Newton, John was a senior portfolio manager and analyst at Mellon Investments Corporation and The Boston Company Asset Management (both BNY Mellon group companies). He has managed dividend strategies for the firm since 2005. Previously, John was Chair of Mellon's Proxy & Governance committee. John began his investment career in 1992 and has spent his entire career with BNY Mellon. John has a BS with distinction in Accounting and Information Management Systems from Babson College and an MS in Finance from Boston College. He received his CFA1 designation in 1997 and is a member of the CFA Institute and the CFA Society Boston.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Invest now